‘I have no idea what I’m going to do:’ Feds abroad fret about making rent without pay or subsidies during shutdown

“When the new month flips over,” said a Defense Department civilian employee based in Germany, “I have no idea what I’m going to do.” 

For civilian federal employees stationed overseas, the government shutdown—poised to enter its fourth week after a weekend of inactivity in Congress—is bringing a range of unique challenges. One such difficulty stems from employees not just missing their normal pay, like their domestic colleagues, but also their various government-provided housing allowances and other stipends. 

The Germany-based Army civilian had sufficient savings to pay his October rent, despite Defense employees abroad not receiving their housing allowances since Sept. 22. The workers received pay through Sept. 30, the last day before the shutdown began, but their stipends cut off early. Going forward, the employee, who requested anonymity to protect himself from retaliation, said he does not yet have a plan for paying his German landlord. 

“I’ve been holding off,” the worker said. “I haven’t had that conversation with him yet.” He added he has not made the call in part because he is “not looking forward to it.” 

President Trump has, without congressional authorization, shifted funds around to ensure military members receive their pay on time. Civilians—both those furloughed and working through the shutdown, like the Army civilian—are now missing paychecks.

Some Defense employees abroad have received letters from the department to share with landlords and others explaining the situation and that back pay is guaranteed (one such letter viewed by Government Executive specifically noted that all employees would be paid retroactive to Oct. 1 at the shutdown’s conclusion, though the Trump administration has publicly argued such back pay is not guaranteed). Some workers said they received no guidance, while those who did said it does not always help. 

“Our German landlords and German utility companies are not being very nice,” said another Defense civilian whose spouse is also a federal employee stationed with her in Germany. The creditors said, “This is a U.S. issue, not a German one,” she added. 

The employees abroad also have fewer options than those based domestically might. Furloughed federal workers in the U.S. can apply for unemployment benefits. They have to repay them once they receive back pay, but it remains an option as an effective no-interest loan in the meantime. Employees stationed overseas said they did not have that option. Many federal workers have said they started working second jobs to make ends meet, but employees abroad said that is not an option given their visa status and, in some cases, their security clearances. 

“Even if [we were] furloughed, we wouldn't be able to seek outside employment, since there would be prohibitions against that in the foreign countries in which we work,” said one foreign service officer who is working during the shutdown for the State Department. 

That employee noted that even if they could work, they would not be able to given the full-time nature of their day job. The second Germany-based civilian similarly said both she and her spouse are working 10- to 12-hour days for the government, so they could not seek out part-time work. Her family is therefore without any income for as long as the shutdown lasts. 

Most foreign service officers reside in government-owned or leased buildings and therefore do not receive allowances from State. Still, Rohit Nepal, an FSO and the American Foreign Service Association’s State Department vice president, noted that many of his colleagues are still waiting on significant reimbursements through travel vouchers that are not getting processed.

Employees are also not receiving new travel orders or getting their belongings shipped in a timely manner, he said. Nepal said the difficulties inherent to moving internationally every few years means most FSO households have only one income, so the lack of paychecks hits harder. Employees overseas also do not have the same support network and, in many cases, charitable offerings, as those enduring the shutdown domestically. 

In addition to housing and utility costs, employees abroad often receive a cost-of-living allowance that compensates them for the difference in the prices of goods and services where they are stationed compared to the United States. Others in dangerous locations receive hardship pay, as well as education allowances for the costs of educating children abroad. 

None of those payments are currently being delivered at least to Defense civilians. 

An employee based in the Middle East who is currently furloughed said his last paycheck, which was missing the first few days of October and all of his allowances, was just 40% of its normal amount. He still plans to pay his November rent on time—he noted he has been carefully saving since President Trump came into office, given the disruption he has brought to the federal workforce writ large—but said most of his colleagues would simply not make any payment and hope for the best. 

The civilian worker said he has not gone on any vacations this year or bought a new car to prepare for a situation like this one. He was hoping to be somewhere else than his current Middle East deployment by now, but his assignment has been extended three times due to the government-wide hiring freeze. 

“It’s been stressful,” he said, adding his options in navigating the shutdown have been particularly limited. “We’re overseas, what do we do?” 

Kevin Hassett, Trump’s director of the National Economic Council, on Friday said federal employees should work with their agencies to avoid any personal financial hardship during the shutdown. 

“We really urge the folks who are in that situation to talk to their supervisors because the supervisors have methods to help,” Hassett said. 

State, for example, has furnished a letter for employees to provide to any financial institution to explain the shutdown and employees not getting paid on time. 

“This lapse in appropriations is beyond our employees' control,” Jason Evans, State’s undersecretary for management, wrote. “We appreciate your organization's understanding and flexibility toward State Department employees until this situation is resolved.” 

Some employees said such letters have not been helpful, as foreign landlords either do not fully grasp the situation or are unmoved by their pleas. 

Employees also expressed concern about the work that is not getting done. The furloughed Defense civilian said his team was preparing for a must-pass biennial inspection of their cyber operations, but he is no longer there to oversee that work. The State employee noted they cannot provide off-site services, meaning they cannot support passport acceptance events for Americans abroad to submit their passport applications and could lose transportation to visit U.S. citizens in foreign prisons.

Nepal, the foreign service officer, said his colleagues will continue reporting to work because they believe in the mission, but that motivation is starting to wane. 

“They believe in service, believe in representing the American people as best they can,” he said. “It’s times like this that it’s difficult to do that.” 

The Germany-based Army worker said he and his kids are still eating, noting there are “many people worse off.” He has struggled to figure out what he will do if the shutdown continues, however. 

“What’s my plan? I don’t know,” he said.